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ARTICLE · 10 MARCH 2000

Validity Of Charges Registered Against The Wrong Company

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United KingdomAntitrust/Competition Law

The recent case of Re Advantage Healthcare (T10) Ltd held that a company's registered number could not fairly be described as a particular of the charge to be registered. (Judgment delivered 19 November 1999 by Mr Justice Lightman)

The Bank of Wales plc (the "Bank") loaned £1,600,000 to Advantage Healthcare (T10) Limited ("the Company") for the purpose of acquiring a property to be run as a nursing home. The Company executed a mortgage in favour of the Bank to secure the loan. The mortgage created a fixed legal charge over the acquired property, a fixed equitable charge over the good will of the business carried on there and a floating charge over the contents.

The Company applied to register the mortgage under Section 395 of the Companies Act 1985. The particulars of charge delivered to the Registrar of Companies correctly identified the Company, but gave the company registration number of an associated company, Advantage Healthcare (T9) Limited ("T9"). The Company and T9 had

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